US stocks finished lower for the second straight trading day, as bond yields regained upside momentum after several US Federal Reserve officials reiterated a hawkish stance for "higher for longer" rates.
Traders are also cautiously awaiting the non-farm payrolls data that is due for release later today. US jobless claims was recorded at 219,000 in the week ending on 1 October, an increase of 29,000 from the previous week, suggesting the upcoming employment data may show a slowdown in hiring, though it may have little impact on Fed's policy stance.Click to enlarge the chart
- Energy stocks outperformed the 11 sectors in the S&P 500 for the fifth consecutive trading day, which is the only sector that closed in green, up 1.8 % on Thursday. Real Estate and Utilities were the worst performers, both down more than 3%. All the mega-cap tech companies' shares were also lower. The Dow fell 1.18%, the S&P 500 was down 1.03%, and the Nasdaq slipped 0.68%.
- AMD warns of the third quarter revenue shortfall due to weakened PC demands and supply chain woes. The chipmaker issued preliminary third-quarter revenue of $5.6 billion, well below the initial expected $6.7 billion, 200 million more or less. The company’s shares fell 3% and Nvidia fell 2% in after-hours trading.
- US dollar index resumed gains, topping 112 again, pressuring the other currencies. USD/JPY climbs back to above 145, hovering around the 24-year high, while USD/CNH rebounded for the second day after falling to the key support of 7.
- Asian markets are set to open lower following a negative close on Wall Street. ASX futures were down 0.73%. Nikkei 225 futures fell 0.99% and Hang Seng Index futures declined 0.54%. The NZX 50 was down 0.50% in the first half-hour of trading.
- WTI futures approaches $90 per barrel, the highest level since mid-September as crude oil prices rose for the fourth straight trading day after OPEC+ decided to cut production by 2 million per barrel, the most since the pandemic period in 2020.
- Gold futures managed to close above a key support level of $1,720, though facing pressure of a strong US dollar and high bond yields. Silver has been also hovering around the $20 handle for the last two trading days. A bullish breakout of these pivotal resistance levels may take the precious metal to reverse the multi-month downtrend.
How to trade the financial markets
An introduction to spread betting and trading CFDs, with example strategies for every style of trading and the three pillars of successful trading.get this free report
Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.